Mears Regulatory News (MER)

6 Jul 2009 07:00



6 July 2009

Mears Group PLC

("Mears" or "the Group")

New Contract Update - £70m of wins for

Social Housing and Domiciliary Care divisions

Mears is pleased to announce the award of a further £70m of new contracts across both of its core divisions with options to increase the total to £90 million. This takes the total of new contracts awarded in the current year to £175 million.

Commenting, Bob Holt, Chief Executive of Mears Group, said:

"The level of opportunities have never been stronger both for our Social Housing division where we continue to build substantial organic growth and in our Care division where we have doubled revenues and profits since we entered this market just two years ago and have a very strong platform from which to build significant growth both organically and by further acquisitions.

The Group enjoys a significant pipeline of contract bids where we continue to benefit from our partnership strategy which is committed to delivering a value for money quality service offering which provides very high tenant satisfaction. This is reflected in our ratings with customers who are progressively focusing on value and delivery of service rather than price alone. 

Mears is not experiencing and does not anticipate a slowdown in either opportunities to grow or in public sector spending in our two primary offerings which is also reinforced by recent comments by the UK government relating to increased spending. I look forward to be able to announce other significant contract awards in the not too distant future."

Social Housing - awarded £64 million of new contracts with options for a further £20 million.

Sedgefield Borough Homes

Mears has been awarded a 5-year partnership, subject to normal completion procedures, with Sedgefield Borough Homes carrying out Decent Homes services. The Group is one of two partners appointed and the contract value to Mears is £32 million. Sedgefield Borough Homes is an existing client of the Group and Mears is delighted to extend the range of services it currently provides under the partnership.

Penwith Housing Association and Devon and Cornwall Housing Association

The award of a 5-year partnership with Penwith Housing Association and Devon and Cornwall Housing Association to provide responsive repairs, voids services and gas servicing. The contract is valued at £20 million, with an option to extend for a further 2 years. The award builds on Mears' current partnership with Penwith Housing Association. 

Russet Homes

The award of a 5-year partnership with Russet Homes in Kent to provide responsive repairs and voids services. The total contract sum is valued at £12 million, with an option to extend for a further 5 years. Russet Homes is one of seven Group partners within the Circle Anglia Group which has a housing stock of over 27,000 properties and is one of the largest housing associations in the UK.

Domiciliary Care division - awarded a further £6 million of new contracts which takes the Group's Domiciliary Care division to 90,000 hours of domiciliary care to 13,500 service users each week.

Richmond upon Thames Borough Council

Mears already operates a flagship Social Housing contract in Richmond and the Group has now been awarded a contract to supply home care to Richmond upon Thames Borough Council which will run for an initial period of four years with a possible extension for a further two years. The expected volume under this contract is 1,300 hours per week and extends the Careforce coverage into a new geographical location.

Doncaster Metropolitan Borough Council

The award of a two year contract with Doncaster Metropolitan Borough Council, commencing 1 July 2009, to deliver 1900 hours of home care per week, with a possible extension of up to a further two years. 

ends.

About Mears  www.mearsgroup.co.uk

Mears is a leading social housing repairs and maintenance service provider to Local Authorities and Registered Social Housing Landlords in the UK and has a growing presence in the domiciliary care market, providing personal care services to people in their own homes delivered as part of outsourcing arrangements with Local Authorities.

Mears employs in excess of 8,000 people and provides maintenance and repairs services to homes nationwide. Mears provides 90,000 hours of domiciliary care to 13,500 service users each week